Cak Participates In Global Sacco Consolidation Virtual Workshop
By Admin
The Co-operative Alliance of Kenya (CAK), represented by the CEO Mr. Daniel Marube and other staff members,
participated in a high-level virtual workshop on global SACCO consolidation models held on
Friday, 19th December 2025, from 9.30 am to 11.30 am.
The workshop brought together key stakeholders from across the cooperative development ecosystem
to share experiences and comparative approaches to strengthening small agriculture-based SACCOs.
The session was organized under the BRIDGES Technical Assistance initiative in collaboration with
the World Bank (WB) team and the National Project Coordination Unit (NPCU). The main objective of
the workshop was to present and discuss global models for consolidating small SACCOs in order to
enhance their sustainability, efficiency, and long-term institutional strength, while aligning
these approaches with the recommendations of the Ministry of Co-operatives.
During the workshop, the World Bank team emphasized the critical role played by financial
cooperatives in supporting economic development, particularly among smallholder farmers and
rural communities. The team noted that many countries around the world are actively working to
strengthen their financial cooperative sectors as a way of improving financial inclusion and
resilience.
The World Bank representatives thanked the host and participating institutions for the opportunity
to engage in the discussion, describing the current period as a decisive moment for SACCO reform.
They highlighted the need to turn around and strengthen cooperative institutions so that they
become robust, self-sustaining, and able to outlive donor-funded projects.
EAFF and the World Bank team shared ideas on how SACCOs can be improved through strategic
interventions, institutional reforms, and adoption of global best practices. Particular attention
was given to small and agriculture-based SACCOs, which often face operational inefficiencies due
to limited scale and capacity.
The workshop outlined several key interventions aimed at strengthening SACCOs and improving their
operational efficiency. These interventions include:
Participants were informed that consolidation models are designed not to eliminate SACCOs, but to
help them achieve economies of scale, improve governance, enhance service delivery, and strengthen
financial performance.
The workshop showcased international experiences from Rwanda, Tanzania, Ghana, Mexico, India,
and Nepal, demonstrating how different countries have approached SACCO consolidation based on
their unique institutional and regulatory environments.
Rwanda’s experience focused on the Umurenge SACCOs, which were initially formed in 2009.
A major consolidation exercise reduced the number of Umurenge SACCOs from 416 to 30 District
SACCOs. Digitization was introduced in 2015, with SACCOs adopting a shared Core Banking System
implemented by the government.
The model operates under one umbrella structure, supported by 152 unions. Policies and operational
manuals were developed for District SACCOs, and a lean management structure was adopted, with
four senior management staff overseeing 24 District SACCOs. This approach significantly improved
efficiency and standardization across the sector.
In Tanzania, over 4,000 Agricultural Marketing Cooperative Organizations (AMCOs) led to the
establishment of SACCOs, with 960 SACCOs currently licensed. The country adopted a Core SACCO
System and partnered with SCCULT, the national umbrella body, rather than working directly
through government structures, as seen in Rwanda.
Ghana’s consolidation model is driven by the Credit Union Association of Ghana, which serves as
the umbrella body for SACCOs. Unlike Rwanda, the government is not the direct partner in the
consolidation process, highlighting an alternative approach where strong cooperative apex
organizations lead sector reforms.
Mexico undertook a comprehensive SACCO merger process in 2008, resulting in a more stable and
regulated cooperative financial sector. The reforms helped streamline operations and improve
compliance with regulatory requirements.
India presented a large-scale cooperative finance model where SACCOs, known as Primary Agricultural
Credit Societies (PACS), manage a loan portfolio estimated at USD 730 billion. The country is
currently working to expand PACS into multipurpose cooperatives to enhance their relevance and
sustainability.
For Kenya, the insights shared during the workshop provide valuable lessons on how SACCO
consolidation, digitization, and capacity building can be implemented in a manner that respects
the cooperative identity while strengthening institutional performance.
The participation of the Co-operative Alliance of Kenya in this global dialogue reaffirmed its
commitment to advocacy, policy engagement, and knowledge sharing aimed at strengthening the
cooperative movement. The lessons from international experiences will contribute to shaping
context-appropriate models that align with the Ministry of Co-operatives’ recommendations and
support the long-term growth of SACCOs in Kenya.
Focus on Strengthening Financial Cooperatives
Key Interventions Discussed
International Models and Experiences
Rwanda
Tanzania
Ghana
Mexico
India
Implications for Kenya